“Let’s Talk Real Estate! “JUMBO RELIEF” April 17th , 2019
Lets Talk Real Estate!
A “jumbo” loan, a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA), is designed to finance luxury properties in highly competitive local real estate markets. The value of a jumbo mortgage varies by state (or country), and the FHFA sets the conforming loan limit size for different areas on a annual basis. The new baseline limit for a conforming mortgage on a single-family home in most of the country will be $484,350 in 2019. For 199 counties and territories, the limit is $726,525. Both limits are 6.9% higher than 2018. Buyers of homes with prices within the new limits could benefit from less strict lending standards or a lower interest rate. Jumbo lenders usually have stricter underwriting guidelines because they are riskier loans not backed by Fannie or Freddie. On the flip side, lenders have more to gain since the dollar value is higher and they can offer additional services to these wealthier customers. For information, please give us a call. We are privately owned agency that is not governed by a large corporation. “OUR SUCCESS HAS BEEN BUILT ONE SATISIFIED CUSTOMER AT A TIME.”